What Is One Disadvantage of Break-Even Analysis

question 163

Multiple Choice

What is one disadvantage of break-even analysis?

• A)It cannot be used to determine the break-even point in dollars.
• B)It is not helpful for evaluating what might happen to profits in different market environments.
• C)It does not consider the effect of price on the quantity that consumers will want.
• D)It is not helpful for evaluating alternatives.
• E)It is an extremely complicated method.

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Definitions:

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Psychoanalytic Perspective

A theory of psychology that emphasizes unconscious psychological processes and contends that childhood experiences significantly affect adult personality.